Inherent virtue or inevitable evil : the effects of directors' and officers' insurance on firm value

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<rdf:Description>
<dc:creator>W. H. Fung, Derrick</dc:creator>
<dc:date>2018-09-28</dc:date>
<dc:description xml:lang="es">Sumario: Whether directors' and officers' (D&O) insurance improves firrn value is a controversial issue. We perform a literature review about the effect of D&O insurance and find mixed results. The proponents of D&O insurance believe it enhances corporate monitoring and improves firm value, while the opponents of D&O insurance argue that it creates a moral hazard problem and diminishes firm value. Against this backdrop, we argue that the trade-off between the monitoring and moral hazard effects depends on the information acquired by the outside directors. Using a sample of listed Canadian firms, we find that (1) a change in D&O insurance coverage has no net effect on a firm's subsequent value when we ignore the information acquired by outside directors, (2) an increase in D&O insurance coverage improves a firm's subsequent value when the outside directors are well informed, and (3) an increase in D&O insurance coverage reduces a firm's subsequent value when the outside directors are poorly informed. Our findings are robust to endogeneity checks and have important implications for the regulation of D&O insurance</dc:description>
<dc:identifier>https://documentacion.fundacionmapfre.org/documentacion/publico/es/bib/166606.do</dc:identifier>
<dc:language>spa</dc:language>
<dc:rights xml:lang="es">InC - http://rightsstatements.org/vocab/InC/1.0/</dc:rights>
<dc:subject xml:lang="es">Seguro de responsabilidad civil patronal</dc:subject>
<dc:subject xml:lang="es">Seguro D&O</dc:subject>
<dc:subject xml:lang="es">Directivos de empresas</dc:subject>
<dc:subject xml:lang="es">Riesgo moral</dc:subject>
<dc:subject xml:lang="es">Gerencia de riesgos</dc:subject>
<dc:subject xml:lang="es">Empresas de seguros</dc:subject>
<dc:subject xml:lang="es">Estadísticas</dc:subject>
<dc:subject xml:lang="es">Estados Unidos</dc:subject>
<dc:type xml:lang="es">Artículos y capítulos</dc:type>
<dc:title xml:lang="es">Inherent virtue or inevitable evil : the effects of directors' and officers' insurance on firm value</dc:title>
<dc:relation xml:lang="es">En: Risk management & insurance review. - Malden, MA : The American Risk and Insurance Association by Blackwell Publishing, 1999- = ISSN 1098-1616. - 28/09/2018 Tomo 21 Número 2 - 2018 , p. 243-288</dc:relation>
<dc:coverage xml:lang="es">Estados Unidos</dc:coverage>
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